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isted financing company PT Adira Dinamika Multi Finance has launched a bond issue amounting to Rp 2.09 trillion (US$182 million).

In an announcement on Friday, Adira said the bonds, which are part of its Rp 8 trillion continuous bonds, would be divided into three series.

The A-series bonds worth Rp 722 billion will mature in 370 days, with an interest rate of 9.15 percent.

The B-series bonds amounting to Rp 880 billion will mature in three years and offer a rate of 10.5 percent. Rp 490 billion of C-series bonds, which will mature in five years, are being offered at 11 percent interest.

The interest rates offered are higher than those Adira had previously set for its Rp 2 trillion first phase of bonds in March.

At that time, the company sold three series of conventional bonds with coupon rates of between 6.85 and 8.9 percent.

Companies issuing debt papers in the first half of the year enjoyed low coupon rates as Bank Indonesia (BI) maintained its benchmark rate.

However, they are now being forced to issue bonds at higher rates as the bond market was rattled early in the second half by the increase in subsidized fuel prices and foreign investors pulling out funds over concerns about a tapering of the US Federal Reserve'€™s stimulus package.

In order to curb rising inflation and halt the capital outflow, BI raised the benchmark rate by 150 basis points to 7.25 percent.

The yield on the government'€™s 5.63 percent bonds, maturing in May 2023, fell by 28 basis points this week to 8.11 percent, according to prices from the Inter Dealer Market Association quoted by Bloomberg.

The decline was the biggest drop since the week ending Sept. 13.

Adira has said it will use the funds raised to support its vehicle-financing business.

The company is scheduled to offer its bonds, which have obtained an AA+ rating from PT Pemeringkat Efek Indonesia, from Oct. 18 to 21 and list them on the Indonesia Stock Exchange (IDX) on Oct. 25.

More companies are also expected to raise funds from the capital markets.

As much as Rp 46.44 trillion in conventional and Islamic bonds have been listed on the bourse year to date, figures from the IDX have shown. As many as 40 companies participated in the issues.

A number of other companies are also planning to raise funds from selling debt papers.

Property company PT Duta Anggada Realty is selling Rp 600 billion of bonds.

IDX data shows that financing firm PT Surya Artha Nusantara Finance plans to raise Rp 250 billion, consumer-goods firm PT Siantar Top expects to raise Rp 250 billion from conventional bonds and another Rp 250 billion from sukuk (Islamic bonds), and property developer PT Summarecon Agung is looking to reap Rp 700 billion from conventional bonds and Rp 300 billion from sukuk.

Telecommunication tower operator PT Tower Bersama Infrastructure and property developer PT Gading Development are seeking Rp 1 trillion each from their bonds issues.